With Snap Payroll, employers no longer need to use a spreadsheet or calculate pay and tax deductions themselves. The app provides step-by-step instructions and is automatically updated with the latest tax rates, reducing the risk for payroll penalties. The U.S. Chamber of Commerce estimates that approximately 33 percent of small businesses incur a payroll penalty each year related to calculation errors.

"Snap Payroll made figuring out how to pay my first employee completely painless - I wouldn't have known where to start without it," said Angela Privin, founder of Do-It-Yourself-Health.Com online community. "As a busy health coach, I manage most of my business on my iPhone and being able to calculate paychecks anywhere saves me precious time."

Employers using Snap Payroll can create checks by entering the number of hours an employee worked and their pay rate. The app will automatically calculate the pay, keeping a record of past paychecks and federal and state tax withholding forms.

The Snap Payroll app is available for free from the App Store and currently only supports employers in the following states: Alaska, California, Florida, Illinois, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming. Support for more states is coming in the upcoming months.

"At Intuit, we develop products by discovering customers' unmet, real-world problems and work to solve them in innovative ways," said Ginny Lee, senior vice president and general manager of Intuit's Employee Management Solution division. "Snap Payroll is the perfect example of this. It's a free app that will generate delight and enduring value for small businesses with very specific payroll needs."